For new homeowners, a house is an important asset that is capable of lowering your tax liability. First-time homebuyers should know about the housing tax deductions and credits they may claim to save them thousands and ultimately offset the cost of owning their home. The only downside, however, is the considerable amount of paperwork one must complete to claim all of these benefits. The savings potentially outweigh any effort, though.
Deductions and Credits
One of the biggest tax rebates you can receive after purchasing a home for the first time comes in the form of a mortgage interest deduction. This particular deduction covers interest paid on up to $1 million in home loans and is beneficial for those with a new mortgage since they tend to pay more interest overall.
The second deduction or credit you can receive is a mortgage credit certification. According to the IRS, the program was designed to help lower-income individuals afford their home. Unlike the usual deductions, the program counts against your tax bill and lowers what you may owe the IRS.
How to Claim
To claim a tax rebate as a first-time homeowner, you must file the correct paperwork directly with the Internal Revenue Service. You will find the documentation that you must fill out and send in on their official website. Be sure to read through all of the wording in the documents. You do not want to make a mistake; we assure you of this.
All tax rebates are handled by the Internal Revenue Service directly.
If you’re interested in learning more about receiving potential tax rebates as a first-time homeowner, contact ASAP Apartment Finders today with any questions. You can reach us at (214) 599-9883. We would be more than happy to help with any inquiries you may have today.